Retail Must Read: Speculate On Stocks In Space

Many investors may be surprised.

The space of stock market investment can be roughly divided into two kinds, one is the space of stock price operation, the other is the promotion space of investment value brought by industry growth.

The stock market can often hear investors say, "this stock is not big enough to buy,"

In fact, this view is wrong. Whether the stocks fall big or not should not be the reason for buying. Those stocks with rising space are the goals we pursue.

So, what kind of stock has room for improvement?

In the space of stock price operation, investors should first judge from the rising rhythm.

If the rising rhythm of individual stocks is very simple, it will go smoothly in a straight line, but it will not be conducive to the sustained rise of the stock.

If the rise of individual stocks is keeping pace with the ups and downs, there will be some strong shocks in the midway, which will benefit the continuous development of stock market.

Secondly, it is judged by quantity, and many investors mistakenly believe that the bigger the volume, the better.

Everything must be measured. If the quantity is too early or over magnified, the upside kinetic energy will be consumed too much, which will easily lead to unsustainable stock market.

Conversely, if the volume is moderately enlarged, the quantity will not be overconsumed, and the stock market still has the potential to attack.

Therefore, the most ideal volume is in the initial stage of the market, the quantity can continue to moderate and magnify, but with the market entering the normal rising channel, the quantity can be reduced slightly and maintained for a long time.

Finally, from the analysis of the role of hot spots on the whole market, the cohesive leader and the leading plate are the engines of the rising market. In a sense, what kind of leading stocks can be said, and what kind of rising prices are there.

Any leading stock with deep development potential, appeal and easy access to large scale mainstream capital often has the potential of continuous rise, and thus has a larger room for growth.

In addition to the rising space of stock prices, the growth of investment value brought by industry growth is also worthy of attention. This is the basic condition to support long-term stock prices.

For value investors, although there are various valuation systems, they are inseparable from the key factor of the industry's imagination.

Because only the continuous expansion of the industry space can provide the industry with an increasing share of the cake, so that enterprises can get the space for rapid growth.

For a relatively limited industry, the cake that is equal to the share is unchanged. Then, the growth of enterprises can only be achieved by feeding on the cake share of other enterprises, which will eventually lead to price war, and so on, so that the growth of enterprises is very difficult to continue, and the upgrading of share prices will also be difficult.

The growth space of the industry is closely related to the life cycle of the industry. The position of the life cycle of the industry restricts or decides the survival and development of the enterprise.

For example, before the birth of the automobile industry, the carriage manufacturing industry in Europe and the United States used to be brilliant. However, even now, the automobile industry has entered a stable period in the life cycle.

This shows that if an industry falls into recession, enterprises in the industry, no matter how strong their assets and strong management capabilities, can not get rid of the narrow space of the industry.

In addition, the market demand of industry products also affects the industry space, and products are scarce.

In short, investors need to choose the direction of investment through industry space and choose the opportunity to buy through price space. This is the most fundamental way to see the spatial speculation.